NetEase (NASDAQ:NTES) Shares Gap Down – Here’s What Happened

NetEase, Inc. (NASDAQ:NTES)’s stock price gapped down prior to trading on Friday . The stock had previously closed at $81.16, but opened at $76.68. NetEase shares last traded at $76.95, with a volume of 208,947 shares trading hands.

Analyst Ratings Changes

Several equities research analysts have weighed in on the company. StockNews.com downgraded NetEase from a “strong-buy” rating to a “buy” rating in a report on Saturday, July 20th. Jefferies Financial Group cut their target price on shares of NetEase from $126.00 to $103.00 and set a “buy” rating on the stock in a research note on Thursday, August 22nd. Bank of America reduced their target price on shares of NetEase from $142.00 to $120.00 and set a “buy” rating on the stock in a report on Friday, August 23rd. Finally, Barclays lowered their price target on shares of NetEase from $104.00 to $82.00 and set an “equal weight” rating for the company in a report on Monday, August 26th. Two investment analysts have rated the stock with a hold rating and five have assigned a buy rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $112.67.

NetEase Price Performance

The firm’s 50 day simple moving average is $83.59 and its 200-day simple moving average is $89.51. The company has a market cap of $49.29 billion, a price-to-earnings ratio of 12.52, a P/E/G ratio of 1.77 and a beta of 0.57.

NetEase (NASDAQ:NTES) last announced its earnings results on Thursday, August 22nd. The technology company reported $12.05 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.62 by $10.43. NetEase had a net margin of 26.98% and a return on equity of 22.30%. The business had revenue of $25.49 billion for the quarter, compared to analyst estimates of $26.01 billion. During the same period last year, the firm posted $1.75 earnings per share. The company’s revenue for the quarter was up 6.1% compared to the same quarter last year. On average, analysts forecast that NetEase, Inc. will post 6.02 EPS for the current year.

NetEase Cuts Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, September 20th. Shareholders of record on Friday, September 6th were paid a dividend of $0.435 per share. This represents a $1.74 annualized dividend and a yield of 2.27%. The ex-dividend date was Friday, September 6th. NetEase’s dividend payout ratio is presently 28.22%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Aurora Investment Counsel raised its stake in shares of NetEase by 3.6% during the third quarter. Aurora Investment Counsel now owns 26,305 shares of the technology company’s stock worth $2,460,000 after purchasing an additional 912 shares during the last quarter. Advisors Asset Management Inc. increased its stake in NetEase by 19.2% in the 3rd quarter. Advisors Asset Management Inc. now owns 16,989 shares of the technology company’s stock valued at $1,589,000 after buying an additional 2,742 shares during the period. Euro Pacific Asset Management LLC raised its position in NetEase by 3.8% during the 3rd quarter. Euro Pacific Asset Management LLC now owns 12,964 shares of the technology company’s stock worth $1,215,000 after buying an additional 469 shares during the last quarter. Central Asset Investments & Management Holdings HK Ltd acquired a new stake in shares of NetEase in the 3rd quarter worth $468,000. Finally, Ashton Thomas Private Wealth LLC lifted its stake in shares of NetEase by 5.5% in the 3rd quarter. Ashton Thomas Private Wealth LLC now owns 7,892 shares of the technology company’s stock worth $738,000 after acquiring an additional 409 shares during the period. 11.07% of the stock is currently owned by hedge funds and other institutional investors.

About NetEase

NetEase, Inc engages in online games, music streaming, online intelligent learning services, and internet content services businesses in China and internationally . The company operates through Games and Related Value-Added Services, Youdao, Cloud Music, and Innovative Businesses and Others segments.